A clear legal framework is imperative for the public-private partnership (PPP) model to attract private investment in development projects, experts said at the Vietnam Investment Summit on June 8-9 in Ho Chi Minh City.
The summit discussed the Government’s continuing liberalization of Vietnam’s investment policies, infrastructure and real estate, and assessed investment criteria required by foreign developers and project owners.
Dang Thanh Tam, chairman of Sai Gon Invest Group, told the summit that the State was yet to create the legal framework for the PPP cooperation to make things clear to potential investors.
The State should facilitate private investors in terms of procedures and financial leverage through providing credit guarantees and incentive tax policies, he suggested, adding that the PPP model had the potential to ease the burden on the state budget.
Tam also proposed that the Government offer incentives for infrastructure projects like roads as they generally require large amounts of capital but take a very long time to retrieve.
Deputy Minister of Planning and Investment Dang Huy Dong said the Government would announce a list of projects for which it would seek the PPP investment with priority given to road, power and water supply projects, followed by projects in the environment, education and other sectors.
The Government would select pilot projects which are feasible, not too complicated and have income generation potential, Dong said, adding that it was determined to cut administrative procedures at all levels by 30 per cent in order to benefit investors.
At the summit, organized by Singapore-headquartered Terrapinn specialized in business to business conferences, experts also discussed the evaluation of investment risks and returns, reasons for Vietnam’s inclusion in investor portfolios, and opportunities as well as challenges in the real estate sector.-